Transport operator Firstgroup (LON:FGP) forecast lower UK rail earnings after franchises ended but said passenger revenue rose strongly.
First said its UK train arm would contribute substantially less to group earnings in the first quarter due to its loss of the First Capital Connect and Scotrail franchises.
But it said the division, which includes First Great Western, Transpennine Express and Hull Trains, increased like-for-like passenger revenue by 6.3% in the period.
The group's UK buses boosted like-for-like revenue by 1.4%, with commercial passenger revenue continuing to grow more than 2%, partially offset by lower concessionary revenue.
It introduced more frequent services in Leeds, plans to launch multi-operator smart ticketing in Leicester and Bristol and ordered 385 new buses worth £77.7mln.
It said it was cutting costs by changing its depot network, although it did not say whether that included site closures.
In its First Transit North American commuter business, further contract wins were offset by reduced Canadian oil sands activity, as expected.
At its Greyhound long-distance bus network, flexible costs helped to offset demand challenges from cheaper fuel, while a yield management project was on track.
In First Student in the US, it said it was achieving average price increases of more than 5% and its contract retention rate topped 80%.
Chief executive Tim O'Toole said: "We anticipate strong progress for the current year in our non-rail businesses, mainly from the First Student and UK Bus turnarounds, to largely offset the reduced size of our UK rail franchise portfolio compared with the prior year.
"We are on track to meet our financial objectives."
Shares fell 0.2p to 118.9p in early trading in London.